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The High Cost of Low Wages: Does Maquiladora Compensation Reduce Turnover?

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  • Janice S Miller

    (University of Wisconsin-Milwaukee)

  • Peter W Hom
  • Luis R Gomez-Mejia

    (Arizona State University)

Abstract

We determined which compensation practices of American-owned plants in Mexico reduced turnover. Regression revealed that profit-sharing and saving plans lowered turnover, while most pay forms did not. We discussed these findings within a national culture approach to compensation administration.© 2001 JIBS. Journal of International Business Studies (2001) 32, 585–595

Suggested Citation

  • Janice S Miller & Peter W Hom & Luis R Gomez-Mejia, 2001. "The High Cost of Low Wages: Does Maquiladora Compensation Reduce Turnover?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 32(3), pages 585-595, September.
    • Handle: RePEc:pal:jintbs:v:32:y:2001:i:3:p:585-595
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    Citations

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    Cited by:

    1. Prince, Nicholas R. & Bruce Prince, J. & Kabst, Rüediger, 2020. "National culture and incentives: Are incentive practices always good?," Journal of World Business, Elsevier, vol. 55(3).
    2. Kurt LOESS & Van V. MILLER & David YOSKOWITZ, 2008. "Offshore employment practices: An empirical analysis of routines, wages and labour turnover," International Labour Review, International Labour Organization, vol. 147(2-3), pages 249-273, June.
    3. Madhu Bala & G.R.B. Chalil & Amit Gupta, 2012. "Emic and Etic: Different Lenses for Research in Culture," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 37(1), pages 45-60, February.
    4. Christensen-Salem, Amanda & Mesquita, Luiz F. & Hashimoto, Marcos & Hom, Peter W. & Gomez-Mejia, Luis R., 2021. "Family firms are indeed better places to work than non-family firms! Socioemotional wealth and employees’ perceived organizational caring," Journal of Family Business Strategy, Elsevier, vol. 12(1).
    5. Jorge A. Wise & Veronica A. Rojas-Mendizabal, 2018. "Attraction and Retention Model: Case of Mexicali, B.C., Mexico," FIIB Business Review, , vol. 7(3), pages 156-166, September.
    6. Moriah Meyskens & Karen Paul, 2010. "The Evolution of Corporate Social Reporting Practices in Mexico," Journal of Business Ethics, Springer, vol. 91(2), pages 211-227, February.
    7. Olfa Aissa, 2016. "A Meta-Analysis of the Financial Participation Impact on Firm Performance," International Journal of Business and Management, Canadian Center of Science and Education, vol. 11(8), pages 186-186, July.
    8. Howell, Jon P. & Romero, Eric J. & Dorfman, Peter W. & Paul, Jim & Bautista, J. Arnoldo, 2003. "Effective leadership in the Mexican maquiladora: challenging common expectations," Journal of International Management, Elsevier, vol. 9(1), pages 51-73.
    9. Petr Petera & Jana Fibírová, 2015. "Basic Approaches to Profit-Sharing and Ideas for Utilization [Základní přístupy k "profit-sharingu" a náměty na další využití]," Český finanční a účetní časopis, Prague University of Economics and Business, vol. 2015(3), pages 97-117.
    10. Mollick, André Varella, 2009. "Employment Responses of Skilled and Unskilled Workers at Mexican Maquiladoras: The Effects of External Factors," World Development, Elsevier, vol. 37(7), pages 1285-1296, July.
    11. Selvarajan, T.T. & Singh, Barjinder & Solansky, Stephanie, 2018. "Performance appraisal fairness, leader member exchange and motivation to improve performance: A study of US and Mexican employees," Journal of Business Research, Elsevier, vol. 85(C), pages 142-154.
    12. Reiche, B. Sebastian, 2008. "The configuration of employee retention practices in multinational corporations' foreign subsidiaries," International Business Review, Elsevier, vol. 17(6), pages 676-687, December.
    13. Brau, James C. & Rodríguez, Javier, 2009. "An empirical analysis of Mexican and US closed-end mutual fund IPOs," Research in International Business and Finance, Elsevier, vol. 23(1), pages 1-17, January.

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